Market Commentary

Making Cents of the Markets

New episode of Ready.Set.Retire! Jon and Lori are joined by Cindy David to talk about retirement and tax strategies for business owners. Cindy is a leading Financial and Estate planner and shares her insights on planning for a tax-effective, smooth transition into retirement.

Listen here.

 

Listen to the latest Making Cents of the Markets on CKNW, where we discussed retirement planning when you own your own business! We talked about when to start planning your exit strategy, valuing your company,  transitioning from being a business owner, and more.

Click to listen here.

Beyond the Markets

We hope that everyone got the chance to enjoy the wonderful weather this week. With the sun shining, it’s a great time to stop and smell the roses – and we mean it quite literally! Visiting VanDusen Botanical Garden – especially in early summer, when the yellow laburnum trees are in bloom – is a lovely way to spend an afternoon.

Spot and photograph local wildlife, find your way through an Elizabethan hedge maze, unwind in a serene setting, dine on the patios of Truffles Cafe or Shaughnessy Restaurant, or browse the garden-themed gift shop. VanDusen has something for everyone to enjoy!

Reserve tickets here.

Be in the Know

With summer officially starting earlier this week, global markets wasted no time rebounding from last week’s pullback as they re-asserted their positive trends due to a few catalysts. President Biden announced that White House officials struck a $1.2 trillion infrastructure package with a bipartisan group of Senators. While the proposal still has to be passed through congress, it is a step in the right direction and will lead to new spending on roads, bridges, rail, and electric transit. This vote is expected to take place in July as Democrats work on a separate human infrastructure bill that they intend to pass through reconciliation.

Additionally, US banks passed the Federal Reserve’s stress test, paving the way for dividend increases and share buybacks. As a result of these developments, economically sensitive sectors such as financials, industrials, and materials led the market this week though gains were seen in most areas. Markets came back healthy and strong this week which is an encouraging sign as markets look ahead for the summer.

Economic updates were light in Canada with retail sales declining 5.7% in April due to tightened restrictions during that time, but investors remain positive that the future is bright. In the US we saw personal income decline 2% in May as government transfers waned while existing and new home sales also declined to suggest that the market is digesting the rapid increase in prices. Manufacturing continues to expand at a fast pace globally with investors’ focus shifting back to the health of the jobs market over the next few weeks.

 

Our Strategy

Portfolios rebounded nicely, with most of our positions up this week. We continue to make active shifts to take advantage of continued rotation in markets. For example, we took some profits in certain growth stocks that have rallied over the past 2 months, rotating into leading companies that have pulled back lately. We remain well-diversified as our focus remains on taking advantage of the economic recovery.

Our last two portfolio companies reported their 1st quarter earnings with Nike being the highlight up over 15% after a record quarter, signaling that the consumer is back and booming. Leadership has been spread across many areas of the market which is encouraging as increasing participation could indicate that a summer rally is underway. We hope to confirm over the next few weeks as we are looking for markets to follow through to the upside which would be a great sign for the months ahead.

 

Visual of the Week

Happy Canada Day this coming Thursday, we hope you all enjoy the four day week!

The comments and opinions expressed in this newsletter are solely the work of Pinkowski Wealth Management, not an official publication of Canaccord Genuity Corp., and may differ from the opinion of Canaccord Genuity Corp’s. Research Department. Accordingly, they should not be considered as representative of Canaccord Genuity Corp’s. beliefs, opinions or recommendations. All information is given as of the date appearing in this newsletter, is for general information only, does not constitute legal or tax advice, and the author Pinkowski Wealth Management does not assume any obligation to update it or to advise on further developments related. All information included herein has been compiled from sources believed to be reliable, but its accuracy and completeness is not guaranteed, nor in providing it do the author or Canaccord Genuity Corp. assume any liability.

CANACCORD GENUITY WEALTH MANAGEMENT IS A DIVISION OF CANACCORD GENUITY CORP., MEMBER-CANADIAN INVESTOR PROTECTION FUND AND THE INVESTMENT INDUSTRY REGULATORY ORGANIZATION OF CANADA